Asian “unicorn” may face challenges this year

“Asian unicorn companies will face severe challenges this year!” Nikkei Asia Review website quoted data from market data provider PitchBookData on the 5th, stating that 23 start-ups in Asia in 2019 have crossed the $ 1 billion valuation threshold and become “independent “Corner companies”, this number has been reduced by about half from the 42 in 2018.

It is reported that 2019 is a year when the atmosphere of global start-ups has undergone an important change. After the listing of Uber, the stock price fluctuated sharply. The valuation of the shared office company WeWork, which was popular with many investment institutions, plummeted after a huge loss. Affected by the global atmosphere, Asian unicorns may face severe challenges this year. Data show that last year the overall financing scale of Asian unicorn companies fell to 21 billion U.S. dollars, equivalent to only one-third of 2018.

CA Ventures Managing Director Nobuyuki Kitagawa analyzed that investors will take a closer look at the valuation of startups and will pay particular attention to their profitability. Many start-ups are facing fierce competition today, and it is difficult to show potential investors profitability. There are also venture capitalists who believe that entering the “post-Uber and post-WeWork era”, the two new keywords in the unicorn field are “profitability” and “sustainability.” If the valuation during the incubation period is too high, it will affect the company’s final listing process. At present, several unicorn companies in Asia are planning to go public. It does not rule out that the valuation of the related companies has been reduced before going public. In this regard, the cold winter of the financing market may emerge in 2020. However, some analysts believe that the current low interest rates in the global market will help continue to provide capital and ammunition for the venture capital market.

The report also believes that China has a strong lineup of start-ups. Of the 23 Asian unicorns mentioned above, China has 14 of them, and the valuation of Byte Beat and Didi Chuxing are as high as 75 billion US dollars and 56 billion US dollars respectively. On the one hand, the Chinese market is more fierce than other Asian countries; on the other hand, the Chinese market is also more innovative. China is ahead of other Asian countries in areas such as artificial intelligence. China is also expected to High-tech fields have fostered more unicorn companies.

Agence France-Presse reported on the 6th that under the impact of the Sino-U.S. Trade war on overseas markets and the impact of industrial transformation, German car production in 2019 was only about 4.7 million, which was the lowest year since 1997. According to the statistics of the German Automobile Industry Association, German car production may fall by 9% last year. And the export figures are even more pessimistic. Germany’s auto exports in 2019 are around 3.5 million, a 13% drop. Dudenhoff, an expert at the German Automotive Research Center, said that this means that Germany’s position in the global automotive industry is declining.

The report also quoted German automotive expert Stephen Blatterzel as saying that “the automotive industry is facing a major transformation in 2020.” In the face of increasingly stringent emissions policies, many companies are investing heavily in research and development of autonomous driving technology, and are shifting their focus from developing internal combustion engine vehicles to developing electric vehicles and hybrid models.